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Evidence on Relationship Between Economic Growth and Financial Development of Selected Northern Indian States: Using Panel VEC Approach

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  • Shravani Sharma

    (Shri Mata Vaishno Devi University)

  • Supran Kumar Sharma

    (Shri Mata Vaishno Devi University)

Abstract

The financial sector components fundamentally include financial institutions, financial markets and other related instruments. The composition, level of superiority and relative importance of financial development differs considerably across different economies around the world and it also varies across regions within an economy. For a diverse country like India where differences in the policies of state affect the cross-state pattern of growth it becomes necessary to identify the association, if present between financial development and economic growth at the region level. Moreover, there is absence of quality research at the regional level and more specifically till date no comprehensive study has been carried out focusing on the North Indian region. Thus, the present endeavour is a first step forward towards identifying the aforesaid relationship by focusing on the selected northern states of India.

Suggested Citation

  • Shravani Sharma & Supran Kumar Sharma, 2019. "Evidence on Relationship Between Economic Growth and Financial Development of Selected Northern Indian States: Using Panel VEC Approach," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 17(4), pages 869-884, December.
    • Handle: RePEc:spr:jqecon:v:17:y:2019:i:4:d:10.1007_s40953-019-00156-0
    DOI: 10.1007/s40953-019-00156-0
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    More about this item

    Keywords

    Financial development; Causality; Panel unit root; Panel cointegration; Economic growth;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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